Wall Street News: Where is the bubble? Everyone points to Bitcoin

Two weeks ago, Bitcoin, the world's largest cryptocurrency by market value, soared to an all-time high of nearly $42,000 before falling sharply. Compared with its low in March 2020, Bitcoin has risen by more than 800%.

At the same time, Tesla's stock price has also climbed sharply in 2020. The stock is now up more than 700% from twelve months ago, helping its CEO Musk become the world's richest man.

However, there is a lot of controversy in the outside world about "Bitcoin" and "Tesla", the two wealth-making tools.

In a survey completed by 627 market professionals released by Deutsche Bank on Tuesday, 89% of investors believed that the financial market was in a bubble phase, and half of the respondents gave Bitcoin a score of 10 on a bubble scale of 1-10, with an average score of 8.7. U.S. technology stocks were seen as the second largest bubble, with an average score of 7.9, and the third highest was European government bonds, with a score of 6.2.

When asked about the fate of Bitcoin and Tesla over the next 12 months, respondents believed that Bitcoin and Tesla were more likely to be halved rather than doubled in the next year, with Tesla being more vulnerable.

Bitcoin bulls say growing interest from institutional buyers and the perception of bitcoin as a safe-haven asset similar to gold have boosted the cryptocurrency, while skeptics argue that bitcoin is a speculative asset and a market bubble that could one day burst.

However, while investors believe that Bitcoin, Tesla and other U.S. tech stocks are in bubbles, it is unclear what exactly might "burst" these bubbles.

Because 71% of investors also said that the "loose monetary situation" that supports the bubble may continue to exist, and they do not believe that the Federal Reserve will tighten its policy before the end of 2021. A quarter of investors also said that the market may force them to take action. (Wall Street News)